I like the growth strategy that Think Childcare are using....

I like the growth strategy that Think Childcare are using.

Buying childcare centres from the incubator company seems to be working ok

The positives

1) good growth projections
2) very good roe
3) good dividend yield
4)the low PE ratio
5) 2 Directors own large numbers of shares in the company
6) the purchase price of the new centres seems to be at a reasonable price
7) good cashflow

The main negatives I see are

1) the main asset of the company is goodwill.
2) competition from other Childcare centres